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Fortress Specialty Cellulose Mill encounters more delays

January 25, 2013, Vancouver, BC - Fortress Paper announced delays with the cogeneration project at its Speciality Cellulose Mill in Quebec and said it won't commence delivery of power for at least three months.


January 25, 2013
By Fortress Paper Ltd.

According to the company, the cogeneration project at its Specialty Cellulose Mill is nearing completion, with engineering and procurement completed and overall construction progress continuing and currently at approximately 94%. However, commissioning and start-up activities have incurred delays as a result of various factors, including unforeseen piping related delays, reduced manpower availability and minor scope of work adjustments. As a result, Fortress now expects delivery of power to commence late in the first quarter or early in the second quarter of 2013, and anticipates additional costs in the 10-20% range for the overall cogeneration project. Hydro Quebec is aware of the postponement and Fortress anticipates delivery of power pursuant to the power purchase agreement in the normal course.

"Although the beginning of 2013 has presented certain minor technical issues and constraints beyond our control, we believe that these matters will be resolved in the near term and we will continue on with our progress towards full capacity," said Chadwick Wasilenkoff, Chairman and CEO of Fortress Paper.


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